Crypto investment firm Bitwise has set ambitious predictions for the future of Bitcoin, anticipating that it will reach new all-time highs in 2026. Despite a recent downturn over the past two months, Bitwise believes Bitcoin’s trajectory will deviate from its historical four-year cycle, which typically includes three years of growth followed by a sharp decline. The firm is projecting that Bitcoin will surpass its previous all-time high of $126,080, set in October 2021.
According to Bitwise Chief Investment Officer Matt Hougan, the traditional indicators governing Bitcoin’s four-year cycles—such as the halving event, interest rate fluctuations, and the volatile nature of the crypto market—are losing their potency. “We don’t see that happening,” he stated, regarding the expected pullback year for 2026. He attributes the shift to increasing institutional investment, boosted by the approval of Bitcoin exchange-traded funds (ETFs) and favorable regulatory developments.
As of now, Bitcoin is trading at approximately $87,800, reflecting a 2% increase over the past day, although it remains over 30% lower than its peak value. While the largest cryptocurrency by market capitalization has struggled over the past year, showing an overall decline of nearly 18%, traditional stock indices such as the Nasdaq and S&P 500 have experienced gains of 14.5% and 12% respectively.
Bitwise suggests that this correlation between Bitcoin and traditional equities will lessen even further by 2026, primarily due to ongoing regulatory advancements and growing institutional adoption. The firm also predicts that Bitcoin, known for its price volatility, may exhibit less volatility than leading AI stocks like Nvidia, the largest publicly traded company by market capitalization.
The firm sees this combination of factors as a “trifecta” for successful investing—offering strong returns, reduced volatility, and lower correlations. Beyond Bitcoin, Bitwise has a positive outlook for other cryptocurrencies as well. It anticipates that Ethereum and Solana could also reach new highs, contingent on the passage of the U.S. CLARITY Act, a legislative proposal aimed at providing clearer regulatory frameworks for the crypto industry.
Bitwise believes both Ethereum and Solana, as layer-1 blockchains, stand to gain from the growing trends in tokenization and stablecoins—elements they view as significant movements in the crypto space, potentially strengthened by the expected regulatory clarity from the CLARITY Act.
In addition to these insights, Bitwise forecasts that crypto equities will outperform traditional tech stocks and that a significant number of Ivy League endowments will begin to invest in cryptocurrencies. As the crypto landscape continues to evolve, all eyes will be on how regulatory developments and institutional investments shape the future of the market.
